Pullback in US Greenback (USD) has scope to increase to 145.60 earlier than stabilisation is probably going towards Japanese Yen (JPY); sturdy assist at 145.20 is unlikely to return beneath risk. Within the longer run, upward momentum is slowing; if USD breaks beneath 145.20, it could imply that 147.18 is the extent of the present USD power, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Upward momentum is slowing
24-HOUR VIEW: “After USD rose greater than we anticipated two days in the past, we indicated yesterday that ‘the sturdy momentum is more likely to proceed to outweigh the overbought situations.’ Nonetheless, we additionally indicated that ‘any additional USD power could also be restricted to 147.20.’ Though our assessments weren’t improper, as USD rose to a excessive of 147.18, we didn’t anticipate the next sharp pullback from the excessive. The pullback has scope to increase to 145.60 earlier than stabilisation is probably going. The sturdy assist at 145.20 is unlikely to return beneath risk. Resistance is at 146.60, adopted by 146.95.”
1-3 WEEKS VIEW: “We turned constructive on Tuesday (08 Jul, spot at 146.15), anticipating a transfer to 146.95. After USD shortly surpassed the 146.95, we highlighted yesterday (09 Jul, spot at 146.70) that ‘we proceed to view USD positively, and the following ranges to observe are 147.20 and 147.60.’ USD then rose to a excessive of 147.18 earlier than staging a surprisingly sharp pullback. Upward momentum seems to be slowing, and if USD breaks beneath 145.20 (no change in ‘sturdy assist’ degree), it could imply that 147.18 is the extent of the present USD power.”
